Does the Bumper Man General Release cover claims for contribution?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- **1.
Release by Franchisee and Guarantors.** Franchisee and Guarantors, on behalf of themselves and their successors, heirs, personal representatives, executors, administrators, personal representatives, agents, contractors, assigns, partners, shareholders, members, directors, officers, members, principals, employees, parents, subsidiaries, and affiliated entities, (collectively "Releasors") freely and without any influence forever release Franchisor, its parent, subsidiaries and affiliates and their respective past and present officers, directors, shareholders, agents and employees, in their corporate and individual capacities (collectively, the "Released Parties"), from any and all claims, demands, liabilities and causes of action of whatever kind or nature, whether known or unknown, vested or contingent, suspected or unsuspected (collectively "Claims"), that Releasors ever owned or held, now own or hold or may in the future own or hold, including, without limitation, claims arising under federal, state and local laws, rules and ordinances, claims for contribution, indemnity and/or subrogation, and claims arising out of, or relating to the Franchise Agreement and all other agreements between Franchisee and/or any Guarantor and any Released Parties, arising out of, or relating to any act, omission or event occurring on or before the date of this Release, unless prohibited by applicable law.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to the 2025 Bumper Man FDD, the General Release executed by the franchisee and any guarantors does cover claims for contribution. The release specifically states that the franchisee and guarantors, on behalf of themselves and their related parties, release Bumper Man and its affiliates from any and all claims, demands, liabilities, and causes of action, including claims for contribution, indemnity, and/or subrogation. This release extends to claims arising under federal, state, and local laws, rules, and ordinances.
This means that a franchisee, by signing the General Release, agrees not to pursue any claims against Bumper Man for contribution, which could arise if the franchisee were held liable for damages or losses and sought to recover a portion of those losses from Bumper Man. The release applies to any act, omission, or event occurring on or before the date the release is signed, unless prohibited by applicable law.
However, it is important to note that in certain states like California, the release may not extend to claims that the franchisee does not know or suspect to exist at the time of signing the release, if those claims would have materially affected their decision to settle with the released party. Additionally, the release does not apply to claims arising under the Franchise Investment Protection Act in Washington. Therefore, prospective franchisees should carefully review the General Release and understand its implications, especially in light of state-specific laws and regulations.